IE Business Daily Business news for the Inland Empire.
The Inland Empire office market hit a bump in the road during the second quarter.
Vacancy rose from six percent to 6.6 percent compared with the first quarter of this year, the lowest vacancy rate in the nation, while absorption fell by 150,000 square feet, according to CBRE.
The region’s net absorption rate was minus-149,600 square feet. Smaller and fewer transactions, did not fill in any of the region’s available inventory.
Leasing fell 32.5 percent, to 128,000 square feet, and no office buildings opened or were under construction during the second quarter. The absence of any office construction has plagued the Inland region for more than 10 years.
“With construction at a standstill, the Inland Empire retained its position as the tightest office market in the United States,” the report states.
The average lease rate rose to $2.28 per square foot, an increase of four cents quarter over quarter and 20 cents year over year.
Office lease rates haven now risen in the Inland Empire for four consecutive quarter, CBRE reported.
